China-backed fund plays it safe with US$743m chip deal

Hong Kong

CANYON Bridge is playing it safe with its latest chip deal. The China-backed fund says it wants to buy the troubled British firm Imagination Technologies. The announcement comes just days after President Donald Trump stymied an earlier attempt to snap up a US chipmaker, citing national security concerns. This US$743 million deal will probably set off fewer alarms. Still, Canyon Bridge's murky government links might attract UK scrutiny too.

On paper, Imagination is an attractive target for the buyout fund. The company's shares cratered earlier this year after it lost Apple, its biggest customer. Investors have wiped out almost £400 million in market value since, effectively forcing Imagination to put itself up for sale.